Browse Forums Home Finance Re: Construction loan questions - urgent 21Oct 05, 2012 2:48 pm Thanks. It doesn't really matter if it's only valid for a week or whatever because we want to get started now, which is why we want approval asap. Will definitely make sure we get something in writing. Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography Re: Construction loan questions - urgent 22Oct 06, 2012 2:38 am Pre-approvals from a lender are generally valid for three months, not too sure where the one day or 1 week came from. Re: Construction loan questions - urgent 23Oct 08, 2012 3:14 pm MalinViktoria Also, how much do you generally pay upfront before the progress payments start? We'll be applying for the new QLD construction grant of $15,000, and we're dependent on this as part of our deposit - we need $37,000 for a 10% deposit and we have $25k in genuine savings. Will we have the grant in time to use as the deposit? B? Not 100% sure how your financial looks like, but just a few comments to note; 1. With the QLD building boost, have you submitted your application or "intention" to apply for the grrant yet? the deadline was on 31st August 2012 http://boost.treasury.qld.gov.au/first- ... r/faqs.php 2. The grant is normally applied once you lay the first foundation- ie stage 1 of the build...it's normally not given for the land purchase. 3. You will be applying for an 90% LVR loan for your land...do you have any deposit for your build? ...if your planning on doing 90% LVR..it needs to be 90% LVR for both the land and build. 4. Cost of LMI, at 90% LVR for a $370,000 land only is around $3,500- $5,500 depending on the lender and product you have chosen- this doesn't include the build yet, unless your $370,000 price is land and build?? 5. Pre-approval is pointless, unless it's a fully checked and conditional pre-approval. ------ Quick build/land process. Step 1: apply for full approval on the land, this normally takes 1 week for a full approval, valuation is done within 24 hours of your broker submitting the deal Step 2 : while you wait for your land approval, you can also get the lender to do an fully checked pre- approval on the build- but you will need to have the fixed price contract ready. The build can not be unconditionally approved UNLESSyou have your DP approval and council approval in place, and you can only get this DP after you buy the land- so it's a catch 22....however it can be a "condition" of the approval. valuation is also done within 24 hours of submitting your build plans and cost. Cost of valuation range from: $0 - $350 Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Construction loan questions - urgent 24Oct 08, 2012 6:06 pm shape MalinViktoria Also, how much do you generally pay upfront before the progress payments start? We'll be applying for the new QLD construction grant of $15,000, and we're dependent on this as part of our deposit - we need $37,000 for a 10% deposit and we have $25k in genuine savings. Will we have the grant in time to use as the deposit? B? Not 100% sure how your financial looks like, but just a few comments to note; 1. With the QLD building boost, have you submitted your application or "intention" to apply for the grrant yet? the deadline was on 31st August 2012 http://boost.treasury.qld.gov.au/first- ... r/faqs.php 2. The grant is normally applied once you lay the first foundation- ie stage 1 of the build...it's normally not given for the land purchase. 3. You will be applying for an 90% LVR loan for your land...do you have any deposit for your build? ...if your planning on doing 90% LVR..it needs to be 90% LVR for both the land and build. 4. Cost of LMI, at 90% LVR for a $370,000 land only is around $3,500- $5,500 depending on the lender and product you have chosen- this doesn't include the build yet, unless your $370,000 price is land and build?? 5. Pre-approval is pointless, unless it's a fully checked and conditional pre-approval. ------ Quick build/land process. Step 1: apply for full approval on the land, this normally takes 1 week for a full approval, valuation is done within 24 hours of your broker submitting the deal Step 2 : while you wait for your land approval, you can also get the lender to do an fully checked pre- approval on the build- but you will need to have the fixed price contract ready. The build can not be unconditionally approved UNLESSyou have your DP approval and council approval in place, and you can only get this DP after you buy the land- so it's a catch 22....however it can be a "condition" of the approval. valuation is also done within 24 hours of submitting your build plans and cost. Cost of valuation range from: $0 - $350 Regards Michael Thanks, Michael! It's not the Building Boost ($10,000) we're applying for, this actually expired in April and the "deadline" you're talking about is for people who started their build before it expired. The one we are applying for is the NEW building grant ($15,000), which only starts on the 12th of October, so we can't actually do anything about that until then. The $370k is for both land and build, so yes, the $37k deposit covers both. To give you an update, we spoke to our broker this week, and he seems pretty confident we'll be able to do this without major problems. He also explained the catch 22 situation, and we will have to sign the land contract before he will send in any applications. We'll probably sign the land contract this week (hopefully), and the initial soil testing agreement with the builder too, so that the broker can send an application for the land. Once the soil test comes back and we get a fixed price, we will apply for the construction loan, and hopefully it will go smoothly. Settlement: 10.02.13 Slab: 06.03.13 Frame: 08.03.13 Lock-up: 05.04.13 Handover: 03.06.13 Build thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=59555 Brisbane Photography Re: Construction loan questions - urgent 25Oct 08, 2012 6:15 pm ohh ok so it's $370k for both- that's better Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Construction loan questions - urgent 26Oct 08, 2012 6:28 pm Someday Definitely depends on a lender but TBH in this day and age an pre approval is not worth that much anyway as it is usually only valid for 1 week or sometimes 1 month. Make sure you get a written pre-approval from a lender (not your broker as such). Written pre-approvals are 3 months with NAB Re: Construction loan questions - urgent 27Oct 09, 2012 1:34 pm If you want a "pre approval broker" I tried these guys and they take your details, find out how much you are pre approved for from several lenders. You might find a big difference in how much you are pre-approved for by different banks. http://www.preapprovemyloan.com.au/Form ... eLoan.aspx Re: Construction loan questions - urgent 28Oct 09, 2012 7:43 pm ....most pre-approvals are so useless, it's just a marketing tool in my eyes. Seen so many people still get rejected, even after they have the so call " pre-approval" . unless the pre-approval has been fully executed, checked and signed off by the LMI and lender it's a useless piece of paper. Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Construction loan questions - urgent 29Oct 09, 2012 11:34 pm shape ....most pre-approvals are so useless, it's just a marketing tool in my eyes. Seen so many people still get rejected, even after they have the so call " pre-approval" . unless the pre-approval has been fully executed, checked and signed off by the LMI and lender it's a useless piece of paper. Agree, there are some lenders who do assess pre-approvals fully which are viable, while ones that give you an instant pre-approval online for punching in some figures are particularly worthless. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 18894 Render your bathroom walls, two opinions versus the one, makes you wonder. 3 6023 thanks Chippy, i hope they have applied sealer but i am doubt to be honest, so i am gonna do this job after handover. 8 16176 |